Will bitcoin co-exist with the current financial system - page 4.

DarkDays

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Quote from: pooya87 on October 21, 2020, 12:09:24 AM

Quote from: Nilanjon on October 20, 2020, 11:48:45 PM

Bitcoin is the future. Does it solve the underlying problems of inequality providing utopia land? Possibly not. However, it solves the constant devaluation of currencies by governments all around the world. The world financial system is built to ensure a specific few groups of people get richer and more prosperous. That stops! Period!

bitcoin as a currency is not meant to do either one of these. it can't fix the "inequality" because it is not equipped to do so and the inflation issue that exists with fiat currencies doesn't exist in bitcoin just because of its controlled capped supply but that is only a very small thing compared to what bitcoin really offers.

bitcoin is meant to address the centralization issue with currencies. so it provides a censorship resistant global payment system that is also fast and secure.

I agree, BTC is a currency on its own that has not ties to 'inequality' (at least the type discussed above' whatsoever as in the end only the people who can afford BTC buy it, people who don't have the money don't buy into BTC. However, by this logic all else excluded this may lead to the putative dilemma of BTC and cryptocurrency in general widening the inequality gap even further.

This gap will consist initially of obstacles from inability to gain access, then move up in terms of finance (to be able to acquire it) and lastly at the level of technological understanding and innovation.
The division within sets/classes of people I can only envision it to be getting bigger and bigger.

dothebeats

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In some way, it already does, though not to the extent that you’re seeing it. Bitcoin can provide a good hedge against inflation and loss of confidence on traditional assets and currencies, but it does not mean that it’ll replace those and most people will move to it. It can also act as a payment tool for cross-border transactions without having to go through all the hurdles of KYC and high fees, plus it’s immutable, public and decentralized so your transactions are safe forever.

I don’t get why people are trying to make bitcoin look like it’s an answer to all our problems in the 21st century. It’s a great invention and addresses some problems, but some are overestimating what bitcoin can do, and that’s where some misconceptions and failure occurs. It’s an option to be used on cases where fiat usage isn’t practical or is too cumbersome to use, not as a replacement or even a permanent contender to replace what people are using.

hatshepsut93

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I don't think it's a binary question, some part of the mainstream finance could adopt Bitcoin, we already see the first companies starting to use it as a reserve asset, maybe in the future some will start using it as a method of transacting money. At the same time there can be an alternative Bitcoin economy growing, where there's small companies that only deal with Bitcoin and might even operate without abiding to regulations. These things aren't mutually exclusive, Bitcoin gives the freedom to use it both ways.

Vaskiy

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Bitcoin co-existing with the current financial system won't happen in the short. As of now governments have begun to develop their own digital currency for usage within the country. This way every country might have its own cryptocurrency. Maybe for the cross border transaction needs people will use bitcoin as a common asset. This is the only possible way by which bitcoin can co-exist with the current financial system.

mezzaluna

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As long as people can earn Cryptocurrencies that they can change into cash, it has no problem co-existing with the current financial system. Bitcoin along other Cryptocurrencies are made to be flexible in how we can use them. Its not causing any problem with people who are making a living out of it so the short answer is: "yes".

wxa7115

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Quote from: Nilanjon on October 20, 2020, 11:48:45 PM

Will bitcoin exist with the current financial system? Or will it become a parallel system that coexists like two countries exist side by side? I believe it will be a parallel system? The fiat money will flow from traditional to bitcoin system slowly but surely. We are already seeing some indication of that happening. Around, $7Billions, have already poured into it. It is here because it no longer 100% believes in the USD or any other currency it holds.

You seem to make a differentiation between your two options when I do not find any, bitcoin since the moment it was created it has been coexisting with the current system so by definition it is also parallel to the current system itself, and since governments cannot get rid of bitcoin this is going to be true for the foreseeable future and since it is quite unlikely bitcoin will get rid of the current economic system then this is a status quo that will continue for a long time.

However as time passes bitcoin will grow in size simply because it is better than the system currently in place and as people realize the lie they have been told about the current system and how those at the top get profits unfairly out of them then more people will begin to use bitcoin as a way to protect themselves from that predatory system.

Beyerd17

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Yes, I believe it will coexist with the current financial system for many years to come.

From what I can see the younger generations embrace and understands how to use cryptocurrencies, while the older generations cling hard to their old school paymentsystems like Visa and so on.

Given enough time, the old generations will go away and in turn crypto will have a golden age.

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Quote from: witcher_sense on October 21, 2020, 03:45:26 AM

People that were wasting their time watching YouTube will now have an incentive to lower their time preference and work hard in order to acquire valuable and scarce bitcoin.

I totally agree with you with most, but this part is quiiite debatable. It's probably safe to assume(at least from where I'm from), that the "lazy" demographic I was referring to doesn't even know much about inflation/deflation; what more monetary policy in general? No monetary shift into a deflationary-ish society is going to change most of those people imo.

Darker45

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Bitcoin is already currently co-existing with the present financial system. And I believe the future will still be a coexistence of both as I really doubt any country will consider Bitcoin as their official currency. Bitcoin will always stay as an alternative to fiat. Fiat will evolve over time but it will likely stay for long.

Furthermore, Bitcoin does not really address the deeper and larger ills of the system. While it addresses centralization in the monetary system, for example, it does not in any way eradicate it. While it somehow provides financial freedom, it does not in any way uplift the condition of the downtrodden sector of society.

Lest we exaggerate and assume that Bitcoin is heaven sent, we need to remind ourselves that Bitcoin does not provide food on the table.

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Quote from: witcher_sense on October 21, 2020, 12:45:12 AM

Quote from: Nilanjon on October 20, 2020, 11:48:45 PM

Will bitcoin exist with the current financial system?

What do you mean by that? Bitcoin was created, has been used and will exist because the current financial system is broken. Bitcoin is an attempt to create a completely independent financial system, a system that governments cannot control. Although they can fight it and try to regulate it. For such financial system to succeed and replace the current one, it first needs to survive in battle with the states and central banks. They should be deprived of the ability and power of control money supply and money issuance. It is not going to happen any time soon, but still bitcoin nowadays can and should be used by people completely isolated from financial system, it is for them, after all, bitcoin was born.

Total True and i also i live in development country regulation about bitcoin in here is not to tight and also are you heard the news recently that bank is racing to adopt blockchain technology and i think slow but sure people gonna use crypto as secondary payment after digital wallet because so many things going on on crypto industry from stable coin,stable gold and recently about Decentralized Finance

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Quote from: mk4 on October 21, 2020, 02:33:00 AM

Lol a lot of people are looking for things and people to blame for their financial "inequality", even though what they mostly do on their free time is to be on Facebook and watch YouTube or Netflix all night whereas the future wealthy minority are actually working on stuff to get out of the shithole that they're in. Lazy people are just looking for an easy way out.

For better or worse, inequality is a natural state of affairs, it is an integral part of any society, so neither Bitcoin nor anything else could fix it. That is true. Nevertheless, history makes it evident that the monetary system under which people live usually affects economic inequality, it can increase or decrease it. The graph below clearly shows us that inequality has only been increasing since we went off the gold standard:

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The graph shows that economic inequality declined in the US from 1917 to the early 1970s when Nixon took America off of the gold standard. The shaded areas of the graph represent the 99 percent, while the lightest colored area at the top represent the upper 1 percent. Economic inequality increased during the inflationary 1920s, but the lower income classes rapidly improved versus the 1 percent when the gold standard was restored after WWII. The graph shows both marginal improvement and stability in economic inequality from the late 1940s to the early 1970s. The trend has been for greater economic inequality ever since.

Source: https://mises.org/library/gold-and-economic-inequality

If we return to deflationary monetary system, but this time based on bitcoin not gold, it could affect the level of inequality in a positive way. People that were wasting their time watching YouTube will now have an incentive to lower their time preference and work hard in order to acquire valuable and scarce bitcoin. The harder they work, the more services they offer, the less unequal they will be.

Wexnident

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Coexist is the term I would use and would hope to happen I suppose. It's not like the governments can fully remove it from the scene, I mean they already tried, and they failed quite splendidly. Not to mention that more and more users are being attracted by Bitcoin after all. Also, Bitcoin wasn't created to address the inequality or whatever of the currency of your country and usd, nor was it solely for currency. It was made mainly to remove the third parties between transactions, to create a system where trust isn't needed, where transactions happen directly between you and another party. Sure it seems more advantageous than the current financial system, but it only fixes SOME of its issues, such as being transparent. And at the same time, it also has issues in itself.

The current financial system of ours isn't actually bad, the evidence is that it's used till now. The problem is, the ones that we trust our money to, the ones that manage the said system, are quite inefficient and literally break the concept of what we give to them, "trust".

btc_angela

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Quote from: Nilanjon on October 20, 2020, 11:48:45 PM

Will bitcoin exist with the current financial system? Or will it become a parallel system that coexists like two countries exist side by side? I believe it will be a parallel system? The fiat money will flow from traditional to bitcoin system slowly but surely. We are already seeing some indication of that happening. Around, $7Billions, have already poured into it. It is here because it no longer 100% believes in the USD or any other currency it holds.

Isn't it existing side by side with the current financial system? Yes, in the beginner there might be problems as the current system attack bitcoin, nevertheless many banks or county has somewhat relax stand on it.

Quote from: Nilanjon on October 20, 2020, 11:48:45 PM

Bitcoin is the future. Does it solve the underlying problems of inequality providing utopia land? Possibly not. However, it solves the constant devaluation of currencies by governments all around the world. The world financial system is built to ensure a specific few groups of people get richer and more prosperous. That stops! Period! Rest will be what off shot applications come out of Bitcoin or Ether etc

If we just for once assume 1btc = $480,000, then we quickly realize the potential of this thing we call bitcoin.
Let's assume 1btc = $480000

But remember, bitcoin is not design to solve the wealth inequality, it was created to be an alternative payment system and not to solve every mankind's problem specially regarding money issues. Just be grateful that you find bitcoin and make the best out of it.

mk4

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Quote from: pooya87 on October 21, 2020, 12:09:24 AM

bitcoin as a currency is not meant to do either one of these. it can't fix the "inequality" because it is not equipped to do so and the inflation issue that exists with fiat currencies doesn't exist in bitcoin just because of its controlled capped supply but that is only a very small thing compared to what bitcoin really offers.

bitcoin is meant to address the centralization issue with currencies. so it provides a censorship resistant global payment system that is also fast and secure.

Lol a lot of people are looking for things and people to blame for their financial "inequality", even though what they mostly do on their free time is to be on Facebook and watch YouTube or Netflix all night whereas the future wealthy minority are actually working on stuff to get out of the shithole that they're in. Lazy people are just looking for an easy way out.

Jet Cash

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Bitcoin is a completely different payment system, and is not dependent on banks. You might as well say will bicycles coexist with cars when/if electric cars replace petrol cars

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Quote from: witcher_sense on October 21, 2020, 12:45:12 AM

Quote from: Nilanjon on October 20, 2020, 11:48:45 PM

Will bitcoin exist with the current financial system?

What do you mean by that? Bitcoin was created, has been used and will exist because the current financial system is broken. Bitcoin is an attempt to create a completely independent financial system, a system that governments cannot control. Although they can fight it and try to regulate it. For such financial system to succeed and replace the current one, it first needs to survive in battle with the states and central banks. They should be deprived of the ability and power of control money supply and money issuance. It is not going to happen any time soon, but still bitcoin nowadays can and should be used by people completely isolated from financial system, it is for them, after all, bitcoin was born.

I am lucky in a way because my country does not have an issue with bitcoin. Sometimes my country's indifference bear good results. Hopefully when the time comes, they will support bitcoin's existence. Regarding the question whether will it co-exist, there will be varying answers. Although the current financial system is broken and cracks are showing everywhere, the roots that it planted in nations are so deep that the system can't be rid of entirely. A coexistence will be of benefit for bitcoin but that alsl means the system it swore to replace will still live and the masses will suffer.

davis196

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Quote

If we just for once assume 1btc = $480,000, then we quickly realize the potential of this thing we call bitcoin.
Let's assume 1btc = $480000

The real potential of Bitcoin is not in the possible price of BTC,that might or might NOT be achieved in the future.The real potential of Bitcoin is in the blockchain technology that can make banking and financial services obsolete.
The main goal of decentralization should be to take away power from the banks,governments and corporations and give ti back to the people.
Bitcoin is currently co-existing with the current global financial system,so your question is kinda pointless.
The really important question is only one-Will Bitcoin change the current financial system?

avikz

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Quote from: Nilanjon on October 20, 2020, 11:48:45 PM

Will bitcoin exist with the current financial system? Or will it become a parallel system that coexists like two countries exist side by side? I believe it will be a parallel system? The fiat money will flow from traditional to bitcoin system slowly but surely. We are already seeing some indication of that happening. Around, $7Billions, have already poured into it. It is here because it no longer 100% believes in the USD or any other currency it holds.

Isn't it co-existing already? It's true that bitcoin will never become a mainstream currency system because it is controlled by none! So no government around the world, will approve it as a mainstream currency ever. We will always see bitcoin as a parallel currency system co-existing with the traditional one! That's how it has grown to this level, and that's how it will eventually reach to the top of the game!

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I was born in a poor country. During our independence 1USD = 7unit of currency. It got devaluated to such a level that now 1USD = 80 units of currency. We are worst off then we were in the 1990s. Some people have become multi-level rich. It is now one of the fastest rich producing nations, whereas the country is mega poor.

I can assume what your country is and which part of that country you belong to! Whatever you are saying is true! However, the reason for such situation is the government and not the currency system. When Britain arrived there, that country used to share 43% of world's GDP and when Britain left the country after looting it for 200 years for their own benefits, it was decreased to 3%! There's nothing we can do about this fact! Bitcoin can't help a country to come out of the poor status. However, individuals can be benefitted financially if they adopt bitcoin.

witcher_sense

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Quote from: Nilanjon on October 20, 2020, 11:48:45 PM

Will bitcoin exist with the current financial system?

What do you mean by that? Bitcoin was created, has been used and will exist because the current financial system is broken. Bitcoin is an attempt to create a completely independent financial system, a system that governments cannot control. Although they can fight it and try to regulate it. For such financial system to succeed and replace the current one, it first needs to survive in battle with the states and central banks. They should be deprived of the ability and power of control money supply and money issuance. It is not going to happen any time soon, but still bitcoin nowadays can and should be used by people completely isolated from financial system, it is for them, after all, bitcoin was born.

pooya87

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Quote from: Nilanjon on October 20, 2020, 11:48:45 PM

Bitcoin is the future. Does it solve the underlying problems of inequality providing utopia land? Possibly not. However, it solves the constant devaluation of currencies by governments all around the world. The world financial system is built to ensure a specific few groups of people get richer and more prosperous. That stops! Period!

bitcoin as a currency is not meant to do either one of these. it can't fix the "inequality" because it is not equipped to do so and the inflation issue that exists with fiat currencies doesn't exist in bitcoin just because of its controlled capped supply but that is only a very small thing compared to what bitcoin really offers.

bitcoin is meant to address the centralization issue with currencies. so it provides a censorship resistant global payment system that is also fast and secure.

Quote from: Nilanjon on October 20, 2020, 11:48:45 PM

Simple. I do not expect amazon to allow bitcoin. However, I expect bitcoin to be used in other parts of our lives in the next decade

they all will adopt bitcoin eventually but first people have to stop wanting to ONLY hold their bitcoins and wishing for its price to go to the moon to make them rich!

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